Broker: Small business health exchange rates "not great"

The rates New York’s small businesses will pay for health insurance next year are “not great,” one broker says.

Last week, the state Department of Financial Services released two sets of rates, one for products available the individual exchange, and one for standard products to be offered through the separate small business exchange. Much of the attention has focused on the individual market, where rates dropped 50 percent from a year ago.

But small businesses and their employees will not be so fortunate. A direct year-to-year comparision is difficult, given the fact that insurers had to change their small group plans to meet specified benefit standards, but experts found double-digit increases.

“Obviously the small group market won’t get the same [price] benefit as the individual market,” said Eric Diamond, director of small group benefits for Syracuse-based Marshall & Sterling Upstate Inc. “It is actually seeing an increase. It’s not great.”

And because products sold off the exchange have to meet the same standards as those on the exchange, they will have the same prices­. Products will be grouped into four categories—platinum, gold, silver and bronze.

Matthew Clarke, vice president of sales for Bouchey & Clarke Benefits Inc. in Troy, NY, said he did a direct comparison between a standard HMO plan available from one carrier this year, and a platinum HMO plan the same carrier will offer in 2014. The 2014 plan was priced about 13 percent higher.

“That is not outrageous,” Clarke said. “If I were to use the same HMO plan [without the changes for the exchange] I would expect a trend increase of 10 [percent] to 12 percent.”

The exchanges will begin this fall to enroll members for coverage beginning in January.